Wheat went north again on Wednesday. The front month of May rose by EUR 2.75 to EUR 272/t on the Euronext/Matif and the spot market prices are also picking up again somewhat. In its first harvest estimate at the German Raiffeisen Association (DRV), a wheat harvest for Germany of 22.01 million tons (summer and winter wheat including durum wheat) was forecast for 2023. That would be a decline of 2.3% compared to the 2022 harvest. The DRV attributes this primarily to a smaller acreage. In particular, the acreage for spring wheat is likely to decline significantly. The area under cultivation for wheat, barley and triticale has shrunk overall, mainly in favor of rapeseed and silo maize. In France, the Ministry of Agriculture updated its soft wheat export forecast for the current marketing year. According to this, 10.45 million tons are to be exported outside the EU, which corresponds to an increase of 19 percent compared to the previous year. On the other hand, French sales to EU countries were reduced, which is mainly due to the price competition in Germany.Uncertainty is caused by the fact that the details of extending the grain deals have not yet been finally settled. Kiev had recently rejected the extension by just 60 days, initially putting the grain agreement back on shaky ground. Moscow makes it a condition that the country's fertilizer exports are made possible again by Western buyers. Unfavorable weather forecasts are raising concerns in India that hail and heavy rain could severely impact wheat stocks there. At the CBoT, the prices closed with green signs, just like in Paris.
Source
VR AGRICULTURAL
